Radico Khaitan, United Spirits and more: 5 liquor stocks surged 10%-88% in last one year
Also Read: ‘Economy to grow at 8% in FY25, green shoots visible in rural consumption’Amid this backdrop, alcohol companies have seen their volumes grow strongly, leading to higher realisations per case. Notably, the premium segment continued to see strong positive traction, while the demand trends in the regular category remained below expectations owing to a general up-trending by certain consumers and a slowdown at the lower end.
As a result, companies experienced a significant surge in their IMFL (Indian-Made Foreign Liquor) sales compared to the non-IMFL segment. Reports indicate that within the IMFL category, whisky holds the largest market share at 66%, followed by brandy at 19% and rum at 13%.Also Read: Rural consumption improved 40% over a decade, says government surveyRegionally, the South leads as the largest alcohol-consuming area, accounting for nearly 60% of the market, followed by the North, West, and East.
Despite rising commodity prices, such as those for grain and glass, companies have maintained their gross margins through ongoing premiumisation and multiple price hikes.As companies reported strong growth in volumes and a significant increase in net profit, investor demand for liquor stocks surged, resulting in a stellar performance. Notably, shares of Tilaknagar Industries delivered an impressive return of 88% in a year.Domestic brokerage firm Systematix has recently initiated coverage on Tilaknagar Industries with a target price of ₹317 per share.
It said that the company is actively pursuing multiple initiatives in premiumisation and geographic expansion. Also Read: Investors return to Indian equities with consumption sectors in spotlightIt pointed out that the company has emerged from its
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